Property Transferred in Connection With the Performance of Services, 48707-48708 [2016-17591]
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Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Rules and Regulations
(b) Iontophoresis device intended for
any other purposes—(1) Identification.
An iontophoresis device intended for
any other purposes is a prescription
device that is intended to use a current
to introduce ions of drugs or non-drug
solutions into the body for medical
purposes other than those specified in
paragraph (a) of this section, meaning
that the device is not intended for use
in diagnosis of cystic fibrosis, or a
specific drug is not specified in the
labeling of the iontophoresis device.
(2) Classification. Class II (special
controls). The device is classified as
class II. The special controls for this
device are:
(i) The following performance testing
must be conducted:
(A) Testing using a drug approved for
iontophoretic delivery, or a solution, if
identified in the labeling, to
demonstrate safe use of the device as
intended;
(B) Testing of the ability of the device
to maintain a safe pH level; and
(C) If used in the ear, testing of the
device to demonstrate mechanical
safety.
(ii) Labeling must include adequate
instructions for use, including sufficient
information for the health care provider
to determine the device characteristics
that affect delivery of the drug or
solution and to select appropriate drug
or solution dosing information for
administration by iontophoresis. This
includes the following:
(A) A description and/or graphical
representation of the electrical output;
(B) A description of the electrode
materials and pH buffer;
(C) When intended for general drug
delivery, language referring the user to
drug labeling approved for
iontophoretic delivery to determine if
the drug they intend to deliver is
specifically approved for use with that
type of device and to obtain relevant
dosing information; and
(D) A detailed summary of the devicerelated and procedure-related
complications pertinent to use of the
device, and appropriate warnings and
contraindications, including the
following warning:
Warning: Potential systemic adverse
effects may result from use of this
device. Drugs or solutions delivered
with this device have the potential to
reach the blood stream and cause
systemic effects. Carefully read all
labeling of the drug or solution used
with this device to understand all
potential adverse effects and to ensure
appropriate dosing information. If
systemic manifestations occur, refer to
the drug or solution labeling for
appropriate action.
VerDate Sep<11>2014
13:45 Jul 25, 2016
Jkt 238001
(iii) Appropriate analysis/testing must
demonstrate electromagnetic
compatibility, electrical safety, thermal
safety, and mechanical safety.
(iv) Appropriate software verification,
validation, and hazard analysis must be
performed.
(v) The elements of the device that
may contact the patient must be
demonstrated to be biocompatible.
(vi) The elements of the device that
may contact the patient must be
assessed for sterility, for devices labeled
as sterile.
(vii) Performance data must support
the shelf life of the elements of the
device that may be affected by aging by
demonstrating continued package
integrity and device functionality over
the stated shelf life.
Dated: July 20, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016–17609 Filed 7–25–16; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9779]
RIN 1545–BM63
Property Transferred in Connection
With the Performance of Services
Internal Revenue Service,
Department of Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations relating to property
transferred in connection with the
performance of services. These final
regulations affect certain taxpayers who
receive property transferred in
connection with the performance of
services and make an election to include
the value of substantially nonvested
property in income in the year of
transfer.
SUMMARY:
Effective Date: These regulations
are effective on July 26, 2016.
Applicability Date: For dates of
applicability, see § 1.83–2(g).
FOR FURTHER INFORMATION CONTACT:
Thomas Scholz or Michael Hughes at
(202) 317–5600 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:
Background
Section 83 of the Internal Revenue
Code (Code) addresses the tax
consequences of a transfer of property in
connection with the performance of
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48707
services. Section 83(a) of the Code
provides generally that the excess of the
fair market value of the transferred
property (determined without regard to
any restriction other than a restriction
which by its terms will never lapse) as
of the first time that the transferee’s
rights in the property are transferable or
are not subject to a substantial risk of
forfeiture, whichever occurs earlier,
over the amount (if any) paid for the
property is included in the service
provider’s gross income for the taxable
year which includes such time. Section
83(b) and § 1.83–2(a) permit the service
provider to elect to include in gross
income, as compensation for services,
the excess (if any) of the fair market
value of the property at the time of
transfer over the amount (if any) paid
for the property. Under section 83(b)(2),
an election under section 83(b) must be
made in accordance with the regulations
thereunder. Under § 1.83–2(c), the
election must be filed with the IRS no
later than 30 days after the date on
which the property is transferred, and a
copy of the election must be submitted
with the taxpayer’s income tax return
for the taxable year in which the
property is transferred.
On July 17, 2015, the Department of
the Treasury (Treasury) and the Internal
Revenue Service (IRS) published a
notice of proposed rulemaking (REG–
135524–14) in the Federal Register (137
FR 42439) under section 83 of the Code
eliminating the requirement that a copy
of a section 83(b) election be submitted
with the taxpayer’s income tax return
for the taxable year in which the
property is transferred. Treasury and the
IRS received no comments responding
to the notice of proposed rulemaking.
No public hearing was requested and no
public hearing was held. Treasury and
the IRS now adopt the proposed
regulations as final regulations without
modification.
Explanation of Provisions
These final regulations remove the
second sentence in § 1.83–2(c) of the
existing regulations, which requires that
a taxpayer submit a copy of a section
83(b) election with the taxpayer’s tax
return for the year in which the property
subject to the election was transferred.
Accordingly, under these final
regulations, a taxpayer is no longer
required to file a copy of a section 83(b)
election with the taxpayer’s income tax
return.
Taxpayers are reminded of their
general recordkeeping responsibilities
pursuant to section 6001 of the Code,
and more specifically of the need to
keep records that show the basis of
property owned by the taxpayer.
E:\FR\FM\26JYR1.SGM
26JYR1
48708
Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Rules and Regulations
Taxpayers must maintain sufficient
records to show the original cost of the
property and to support the tax
treatment of the property transfer
reported on the taxpayers’ returns.
Taxpayers must keep these records as
long as they may be needed for the
administration of any provision of the
Code. Generally, this means records that
support items shown on a return must
be retained until the period of
limitations for that return expires. See
section 6501 of the Code. A copy of any
section 83(b) election made with respect
to property must be kept until the
period of limitations expires for any
return with respect to which the income
inclusion or basis of the property is
relevant.
Applicability Date
These regulations apply to property
transferred on or after January 1, 2016.
For transfers of property on or after
January 1, 2015 and prior to January 1,
2016, the preamble to the proposed
regulations provides that taxpayers may
rely on the guidance in the proposed
regulations (which is identical to the
guidance contained in these final
regulations).
Effect on Other Documents
Rev. Proc. 2012–29 (IRB 2012–28, 49)
states that a taxpayer making a section
83(b) election must submit a copy of the
election with his or her tax return for
the taxable year in which such property
was transferred. Effective as of July 26,
2016, Rev. Proc. 2012–29 is revoked, in
part, to the extent it requires,
inconsistent with these final
regulations, a taxpayer to submit a copy
of a section 83(b) election with his or
her income tax return.
rmajette on DSK2TPTVN1PROD with RULES
Statement of Availability of IRS
Documents
Rev. Proc. 2012–29 is published in the
Internal Revenue Bulletin (or
Cumulative Bulletin) and is available
from the Superintendent of Documents,
U.S. Government Printing Office,
Washington, DC 20402, or by visiting
the IRS Web site at https://www.irs.gov.
Special Analyses
Certain IRS regulations, including this
one, are exempt from the requirements
of Executive Order 12866, as
supplemented and reaffirmed by
Executive Order 13563. Therefore, a
regulatory impact assessment is not
required. It also has been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations, and
because the regulations do not impose a
collection of information on small
VerDate Sep<11>2014
13:45 Jul 25, 2016
Jkt 238001
entities, the Regulatory Flexibility Act
(5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f) of the Code,
these regulations have been submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for
comment on their impact on small
business.
Drafting Information
The principal authors of these final
regulations are Thomas Scholz and
Michael Hughes, Office of the Associate
Chief Counsel (Tax Exempt and
Government Entities). However, other
personnel from the IRS and the Treasury
participated in their development.
List of Subjects 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for Part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.83–2 is amended by
revising paragraph (c) and adding
paragraph (g) to read as follows:
■
§ 1.83–2 Election to include in gross
income in year of transfer.
*
*
*
*
*
(c) Manner of making election. The
election referred to in paragraph (a) of
this section is made by filing one copy
of a written statement with the internal
revenue office with which the person
who performed the services files his
return.
*
*
*
*
*
(g) Effective/applicability date.
Paragraph (c) of this section applies to
property transferred on or after January
1, 2016.
John M. Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: April 20, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2016–17591 Filed 7–25–16; 8:45 am]
BILLING CODE 4830–01–P
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DEPARTMENT OF LABOR
Occupational Safety and Health
Administration
29 CFR Parts 1910, 1915, and 1926
[Docket No. OSHA–2010–0034]
RIN 1218–AB70
Occupational Exposure to Respirable
Crystalline Silica; Approval of
Collections of Information
Occupational Safety and Health
Administration (OSHA), Department of
Labor.
ACTION: Final rule; Office of
Management and Budget’s (OMB)
approval of collections of information.
AGENCY:
This rule is a technical
amendment announcing that OMB has
approved the collections of information
contained in OSHA’s standards for
Occupational Exposure to Respirable
Crystalline Silica and revising OSHA’s
regulations to reflect that approval. The
OMB approval number is 1218–0266.
DATES: Effective July 26, 2016.
FOR FURTHER INFORMATION CONTACT:
Todd Owen, OSHA, Directorate of
Standards and Guidance, Room N–3609,
U.S. Department of Labor, 200
Constitution Avenue NW., Washington,
DC 20210; telephone (202) 693–2222.
SUPPLEMENTARY INFORMATION: OSHA
published a final rule for the
Occupational Exposure to Respirable
Crystalline Silica standards on March
25, 2016 (81 FR 16286), after
determining that employees exposed to
respirable crystalline silica at the
previous permissible exposure limits
face a significant risk of material
impairment to their health. The
evidence in the record for this
rulemaking indicates that workers
exposed to respirable crystalline silica
are at increased risk of developing
silicosis and other nonmalignant
respiratory diseases, lung cancer, and
kidney disease. These requirements are
necessary to provide protection from
these hazards. The silica final rule
becomes effective on June 23, 2016.
Start-up dates for specific provisions are
set in § 1910.1053(l) for general industry
and maritime and in § 1926.1153(k) for
construction.
Consistent with the Paperwork
Reduction Act (PRA) (44 U.S.C. 3501–
3520), the Federal Register notice for
the Occupational Exposure to
Respirable Crystalline Silica final rule
states that employers do not have to
comply with the collections of
information until OMB approves those
collections of information and the
SUMMARY:
E:\FR\FM\26JYR1.SGM
26JYR1
]]>Agencies
[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Rules and Regulations]
[Pages 48707-48708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17591]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9779]
RIN 1545-BM63
Property Transferred in Connection With the Performance of
Services
AGENCY: Internal Revenue Service, Department of Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to property
transferred in connection with the performance of services. These final
regulations affect certain taxpayers who receive property transferred
in connection with the performance of services and make an election to
include the value of substantially nonvested property in income in the
year of transfer.
DATES: Effective Date: These regulations are effective on July 26,
2016.
Applicability Date: For dates of applicability, see Sec. 1.83-
2(g).
FOR FURTHER INFORMATION CONTACT: Thomas Scholz or Michael Hughes at
(202) 317-5600 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 83 of the Internal Revenue Code (Code) addresses the tax
consequences of a transfer of property in connection with the
performance of services. Section 83(a) of the Code provides generally
that the excess of the fair market value of the transferred property
(determined without regard to any restriction other than a restriction
which by its terms will never lapse) as of the first time that the
transferee's rights in the property are transferable or are not subject
to a substantial risk of forfeiture, whichever occurs earlier, over the
amount (if any) paid for the property is included in the service
provider's gross income for the taxable year which includes such time.
Section 83(b) and Sec. 1.83-2(a) permit the service provider to elect
to include in gross income, as compensation for services, the excess
(if any) of the fair market value of the property at the time of
transfer over the amount (if any) paid for the property. Under section
83(b)(2), an election under section 83(b) must be made in accordance
with the regulations thereunder. Under Sec. 1.83-2(c), the election
must be filed with the IRS no later than 30 days after the date on
which the property is transferred, and a copy of the election must be
submitted with the taxpayer's income tax return for the taxable year in
which the property is transferred.
On July 17, 2015, the Department of the Treasury (Treasury) and the
Internal Revenue Service (IRS) published a notice of proposed
rulemaking (REG-135524-14) in the Federal Register (137 FR 42439) under
section 83 of the Code eliminating the requirement that a copy of a
section 83(b) election be submitted with the taxpayer's income tax
return for the taxable year in which the property is transferred.
Treasury and the IRS received no comments responding to the notice of
proposed rulemaking. No public hearing was requested and no public
hearing was held. Treasury and the IRS now adopt the proposed
regulations as final regulations without modification.
Explanation of Provisions
These final regulations remove the second sentence in Sec. 1.83-
2(c) of the existing regulations, which requires that a taxpayer submit
a copy of a section 83(b) election with the taxpayer's tax return for
the year in which the property subject to the election was transferred.
Accordingly, under these final regulations, a taxpayer is no longer
required to file a copy of a section 83(b) election with the taxpayer's
income tax return.
Taxpayers are reminded of their general recordkeeping
responsibilities pursuant to section 6001 of the Code, and more
specifically of the need to keep records that show the basis of
property owned by the taxpayer.
[[Page 48708]]
Taxpayers must maintain sufficient records to show the original cost of
the property and to support the tax treatment of the property transfer
reported on the taxpayers' returns. Taxpayers must keep these records
as long as they may be needed for the administration of any provision
of the Code. Generally, this means records that support items shown on
a return must be retained until the period of limitations for that
return expires. See section 6501 of the Code. A copy of any section
83(b) election made with respect to property must be kept until the
period of limitations expires for any return with respect to which the
income inclusion or basis of the property is relevant.
Applicability Date
These regulations apply to property transferred on or after January
1, 2016. For transfers of property on or after January 1, 2015 and
prior to January 1, 2016, the preamble to the proposed regulations
provides that taxpayers may rely on the guidance in the proposed
regulations (which is identical to the guidance contained in these
final regulations).
Effect on Other Documents
Rev. Proc. 2012-29 (IRB 2012-28, 49) states that a taxpayer making
a section 83(b) election must submit a copy of the election with his or
her tax return for the taxable year in which such property was
transferred. Effective as of July 26, 2016, Rev. Proc. 2012-29 is
revoked, in part, to the extent it requires, inconsistent with these
final regulations, a taxpayer to submit a copy of a section 83(b)
election with his or her income tax return.
Statement of Availability of IRS Documents
Rev. Proc. 2012-29 is published in the Internal Revenue Bulletin
(or Cumulative Bulletin) and is available from the Superintendent of
Documents, U.S. Government Printing Office, Washington, DC 20402, or by
visiting the IRS Web site at https://www.irs.gov.
Special Analyses
Certain IRS regulations, including this one, are exempt from the
requirements of Executive Order 12866, as supplemented and reaffirmed
by Executive Order 13563. Therefore, a regulatory impact assessment is
not required. It also has been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to
these regulations, and because the regulations do not impose a
collection of information on small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of
the Code, these regulations have been submitted to the Chief Counsel
for Advocacy of the Small Business Administration for comment on their
impact on small business.
Drafting Information
The principal authors of these final regulations are Thomas Scholz
and Michael Hughes, Office of the Associate Chief Counsel (Tax Exempt
and Government Entities). However, other personnel from the IRS and the
Treasury participated in their development.
List of Subjects 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for Part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.83-2 is amended by revising paragraph (c) and adding
paragraph (g) to read as follows:
Sec. 1.83-2 Election to include in gross income in year of transfer.
* * * * *
(c) Manner of making election. The election referred to in
paragraph (a) of this section is made by filing one copy of a written
statement with the internal revenue office with which the person who
performed the services files his return.
* * * * *
(g) Effective/applicability date. Paragraph (c) of this section
applies to property transferred on or after January 1, 2016.
John M. Dalrymple,
Deputy Commissioner for Services and Enforcement.
Approved: April 20, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2016-17591 Filed 7-25-16; 8:45 am]
BILLING CODE 4830-01-P
